In Study 1, the authors find that people are more satisfied with a service experience when they choose to participate in the provider's voluntary green program (e.g., recycling)—an effect mediated by the “warm glow” of participation. The downside, however, is that this same mechanism decreases satisfaction among people who choose not to participate. In Study 2, analysis of data from the J.D. Power Guest Satisfaction Index suggests that incentivizing the program (i.e., compensating the program participants) paradoxically increases satisfaction for those who do not participate but decreases satisfaction among those who do. Studies 3 and 4 explore how manipulating incentive characteristics might enable managers to maximize satisfaction for both groups. Study 3 indicates that, compared with no incentive, an “other-benefiting” incentive increases warm glow and satisfaction for green program participants but decreases them among nonparticipants. Study 4, however, suggests that mixed incentive bundles (i.e., providing both self-benefiting and other-benefiting options) maximize warm glow and satisfaction for both groups—the ideal outcome for managers.
AndreoniJames (1989), “Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence,”Journal of Political Economy, 97 (4), 1447–58.
2.
AndreoniJames (1990), “Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving,”Economic Journal, 100 (401), 464–77.
3.
AndreoniJames (1995), “Warm-Glow Versus Cold-Prickle: The Effects of Positive and Negative Framing on Cooperation in Experiments,”Quarterly Journal of Economics, 110 (1), 1–21.
4.
AndrewsMichelle, LuoXueming, FangZheng, and AsparaJaakko (2014), “Cause Marketing Effectiveness and the Moderating Role of Price Discounts,”Journal of Marketing, 78 (November), 120–42.
5.
AnikLalin, AkninLara B., NortonMichael I., DunnElizabeth W., and QuoidbachJordi (2013), “Prosocial Bonuses Increase Employee Satisfaction and Team Performance,”PLoS One, 8 (9), e75509.
6.
BalcetisEmily and DunningDavid (2006), “See What You Want to See: Motivational Influences on Visual Perception,”Journal of Personality and Social Psychology, 91 (4), 612–25.
7.
BatsonC. Daniel, BatsonJudy G., GriffittCari A., BarrientosSergio, BrandtJ. Randall, SprengelmeyerPeter, et al. (1989), “Negative-State Relief and the Empathy–Altruism Hypothesis,”Journal of Personality and Social Psychology, 56 (6), 922–33.
8.
BaumannDonald J., CialdiniRobert B., and KendrickDouglas T. (1981), “Altruism as Hedonism: Helping and Self-Gratification as Equivalent Responses,”Journal of Personality and Social Psychology, 40 (6), 1039–46.
9.
BénabouRoland and TiroleJean (2006), “Incentives and Prosocial Behavior,”American Economic Review, 96 (12), 1652–78.
10.
BowlesSamuel and GintisHerbert (2006), “Prosocial Emotions,” in The Economy as an Evolving Complex System III: Current Perspectives and Future Directions, BlumeL.E.DurlaufS.N., eds. Oxford, UK: Oxford University Press, 339–64.
CialdiniRobert B., RenoRaymond R., and KallgrenCarl A. (1990), “A Focus Theory of Normative Conduct: Recycling the Concept of Norms to Reduce Littering in Public Places,”Journal of Personality and Social Psychology, 58 (6), 1015–26.
14.
CohenJacob (1988), Statistical Power Analysis for the Behavioral Sciences, Vol. 2. Hillsdale, NJ: Lawrence Erlbaum Associates.
15.
Cornell University (2013), “Sustainability Roundtable,” November, 1-2.
16.
CrumplerHeidi and GrossmanPhilip J. (2008), “An Experimental Test of Warm Glow Giving,”Journal of Public Economics, 92 (5), 1011–21.
17.
CummingGeoff and FinchSue (2005), “Inference by Eye: Confidence Intervals and How to Read Pictures of Data,”American Psychologist, 60 (2), 170–80.
18.
DahlDarren W., HoneaHeather, and ManchandaRajesh V. (2005), “Three Rs of Interpersonal Consumer Guilt: Relationship, Reciprocity, Reparation,”Journal of Consumer Psychology, 15 (4), 307–15.
19.
DunningDavid (2007), “Self-Image Motives and Consumer Behavior: How Sacrosanct Self-Beliefs Sway Preferences in the Marketplace,”Journal of Consumer Psychology, 17 (4), 237–49.
20.
ErevellesSunil (2012), “The Role of Affect in Marketing,”Journal of Business Research, 42 (3), 199–215.
21.
FitzsimonsGavan J. and LehmannDonald R. (2004), “Reactance to Recommendations: When Unsolicited Advice Yields Contrary Responses,”Marketing Science, 23 (1), 82–94.
22.
FornellClaes and LarckerDavid F. (1981), “Evaluating Structural Equation Models with Unobservable Variables and Measurement Error,”Journal of Marketing Research, 18 (February), 39–50.
23.
FrankeNikolaus, SchreierMartin, and KaiserUlrike (2010), “The ‘I Designed It Myself’ Effect in Mass Customization,”Management Science, 56 (1), 125–40.
24.
FreyBruno S. and Oberholzer-GeeFelix (1997), “The Cost of Price Incentives: An Empirical Analysis of Motivation Crowding-Out,”American Economic Review, 87 (4), 746–55.
25.
FusterAndreas and MeierStephan (2010), “Another Hidden Cost of Incentives: The Detrimental Effect on Norm Enforcement,”Management Science, 56 (1), 57–70.
26.
GoldsteinNoah J., CialdiniRobert B., and GriskeviciusVladas (2008), “A Room with a Viewpoint: Using Social Norms to Motivate Environmental Conservation in Hotels,”Journal of Consumer Research, 35 (3), 472–82.
27.
GreveWerner and WenturaDirk (2003), “Immunizing the Self: Self-Concept Stabilization Through Reality-Adaptive Self-Definitions,”Personality and Social Psychology Bulletin, 29 (1), 39–50.
28.
GriskeviciusVladas, TyburJoshua M., and Van den BerghBram (2010), “Going Green to Be Seen: Status, Reputation, and Conspicuous Conservation,”Journal of Personality and Social Psychology, 98 (3), 392–404.
29.
HabelJohannes, SchonsLaura Marie, AlaviSascha, and WiesekeJan (2015), “Warm Glow or Extra Charge? The Ambivalent Effect of Corporate Social Responsibility Activities on Customers’ Perceived Price Fairness,”Journal of Marketing, 80 (January), 84–105.
30.
HarbaughWilliam T. (1998), “What Do Donations Buy? A Model of Philanthropy Based on Prestige and Warm Glow,”Journal of Public Economics, 67 (2), 269–84.
31.
HarbaughWilliam T., MayrUlrich, and BurghartDaniel R. (2013), “Neural Responses to Taxation and Voluntary Giving Reveal Motives for Charitable Donations,”Science, 316 (5831), 1622–25.
32.
HartmannPatrick and Apaolaza-IbáñezVanessa (2012), “Consumer Attitude and Purchase Intention Toward Green Energy Brands: The Roles of Psychological Benefits and Environmental Concern,”Journal of Business Research, 65 (9), 1254–63.
33.
HayesAndrew F. (2013), Introduction to Mediation, Moderation, and Conditional Process Analysis: A Regression-Based Approach. New York: Guilford Press.
34.
HenselerJörg, RingleChristian M., and SarstedtMarko (2015), “A New Criterion for Assessing Discriminant Validity in Variance-Based Structural Equation Modeling,”Journal of the Academy of Marketing Science, 43 (1), 1–21.
35.
HomburgChristian, KoschateNicole, and HoyerWayne D. (2006), “The Role of Cognition and Affect in the Formation of Customer Satisfaction: A Dynamic Perspective,”Journal of Marketing, 70 (July), 21–31.
36.
Hospitalitynet.org (2012), “Misconceptions About Efficiency Initiatives and Impact on Customer Satisfaction Deters U.S. Hoteliers from Investing in Energy Management,” (February 15), (accessed April 22, 2016), [available at http://www.hospitalitynet.org/news/4054897.html].
37.
ImasAlex (2014), “Working for the ‘Warm Glow’: On the Benefits and Limits of Prosocial Incentives,”Journal of Public Economics, 114, 14–18.
38.
J.D. Power and Associates (2014), 2014 North America Hotel Guest Satisfaction Index Study. New York: McGraw-Hill.
39.
KahnemanDaniel and KnetschJack L. (1992), “Valuing Public Goods: the Purchase of Moral Satisfaction,”Journal of Environmental Economics and Management, 22 (1), 57–70.
40.
KapfererJean-Noël and Michaut-DenizeauAnne (2014), “Is Luxury Compatible with Sustainability? Luxury Consumers’ Viewpoint,”Journal of Brand Management, 21 (1), 1–22.
41.
KarmarkarUma R. and BollingerBryn (2015), “BYOB: How Bringing Your Own Shopping Bags Leads to Treating Yourself and the Environment,”Journal of Marketing, 79 (July), 1–15.
42.
KatsikeasConstantine S., MorganNeil A., LeonidouLeonidas C., and HultG. Tomas M. (2016), “Assessing Performance Outcomes in Marketing,”Journal of Marketing, 80 (March), 1–20.
43.
KerrJohn, VardhanMamta, and JindalRohit (2012), “Prosocial Behavior and Incentives: Evidence from Field Experiments in Rural Mexico and Tanzania,”Ecological Economics, 73 (15), 220–27.
44.
KironDavid, KruschwitzNina, HaanaesKnut, and Ingrid von StrengVelken (2012), “Sustainability Nears a Tipping Point,”MIT Sloan Management Review, 53 (2), 69–74.
45.
KotlerPhilip (2011), “Reinventing Marketing to Manage the Environmental Imperative,”Journal of Marketing, 75 (July), 132–35.
46.
KronrodAnn, GrinsteinAmir, and WathieuLuc (2012), “Go Green! Should Environmental Messages Be So Assertive?”Journal of Marketing, 76 (January), 95–102.
47.
KundaZiva (1990), “The Case for Motivated Reasoning,”Psychological Bulletin, 108 (3), 480–98.
48.
LinYing-Ching and ChangChiu-chi Angela (2012), “Double Standard: The Role of Environmental Consciousness in Green Product Usage,”Journal of Marketing, 76 (September), 125–34.
49.
LiuPeggy J., HawsKelly L., LambertonCait, CampbellTroy H., and FitzsimonsGavan J. (2015), “Vice-Virtue Bundles,”Management Science, 61 (1), 204–28.
50.
LiuPeggy J., LambertonCait, and HawsKelly L. (2015), “Should Firms Use Small Financial Benefits to Express Appreciation to Consumers? Understanding and Avoiding Trivialization Effects,”Journal of Marketing, 79 (May), 74–90.
51.
MazarNina and ZhongChen-Bo (2010), “Do Green Products Make Us Better People?”Psychological Science, 21 (4), 494–98.
52.
MelissenFrans, CavagnaroElena, DamenMaartje, and DüwekeAnna (2015), “Is the Hotel Industry Prepared to Face the Challenge of Sustainable Development?”Journal of Vacation Marketing, 11 (30), 1–12.
53.
MittalVikas and FrenneaCarly (2010), Customer Satisfaction: A Strategic Review and Guidelines for Managers. Cambridge, MA: Marketing Science Institute.
54.
NickersonRaymond S. (1998), “Confirmation Bias: A Ubiquitous Phenomenon in Many Guises,”Review of General Psychology, 2 (2), 175–220.
55.
NortonMichael I., MochonDaniel, and ArielyDan (2012), “The IKEA Effect: When Labor Leads to Love,”Journal of Consumer Psychology, 22 (3), 453–60.
56.
NunesPaulo A.L.D. and SchokkaertErik (2003), “Identifying the Warm Glow Effect in Contingent Valuation,”Journal of Environmental Economics and Management, 45 (2), 231–45.
57.
OliverRichard (2010), Satisfaction: A Behavioral Perspective on the Consumer. New York: M.E. Sharpe.
58.
PelozaJohn, WhiteKatherine, and ShangJingzhi (2013), “Good and Guilt-Free: The Role of Self-Accountability in Influencing Preferences for Products with Ethical Attributes,”Journal of Marketing, 77 (January), 104–19.
59.
PhamMichel Tuan and AvnetTamar (2004), “Ideals and Oughts and the Reliance on Affect Versus Substance in Persuasion,”Journal of Consumer Research, 30 (4), 503–18.
60.
RoggeveenAnne L., TsirosMichael, and GrewalDhruv (2012), “Understanding the Co-Creation Effect: When Does Collaborating with Customers Provide a Lift to Service Recovery?”Journal of the Academy of Marketing Science, 40 (6), 771–90.
61.
RussoJ. Edward, MeloyMargaret G., and MedvecVictoria Husted (1998), “Predecisional Distortion of Product Information,”Journal of Marketing Research, 35 (November), 438–52.
62.
TitmusRichard M. (1970), The Gift Relationship. London: Allen and Unwin.
63.
ToninMirco and VlassopoulosMichael (2013), “Experimental Evidence of Self-Image Concerns as Motivation for Giving,”Journal of Economic Behavior & Organization, 90, 19–27.
64.
WinterichKaren Page and BaroneMichael J. (2011), “Warm Glow or Cold, Hard Cash? Social Identity Effects on Consumer Choice for Donation Versus Discount Promotions,”Journal of Marketing Research, 48 (October), 855–68.
65.
WinterichKaren Page, MittalVikas, and AquinoKarl (2013), “When Does Recognition Increase Charitable Behavior? Toward a Moral Identity-Based Model,”Journal of Marketing, 77 (May), 121–34.
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
